Ex-Virgin Radio chief John Pearson pulls bid for Absolute Radio

John Pearson, the former chief executive of Virgin Radio, has pulled out of the process to buy Absolute Radio after what is thought to have been a difference in opinion over its valuation.

It is understood that Pearson, who was backed by Peter Dubens’s Oakley Capital private equity fund, was nearing a deal before Christmas but talks have now stalled because two parties could not agree on price.

Bauer Media, the owner of the Magic and Kiss networks, is understood to have shown an interest in the business and could be close to doing a deal.

Bennett, Coleman & Co is thought to be looking for at least £20m for the loss-making business it bought for £52.3m in 2008, while Pearson's Oakley Capital-backed bid is thought to have valued it at less than that.

Pearson said: "I can confirm that we have withdrawn from the process."